Compact mode

Average True Range (ATR)

Known for Volatility Without Direction

Table of content

General Information
Characteristics
Facts

Application
Technical Details
Usage
Evaluation
Performance Metrics
Alternatives
FAQ

General Information

Indicator Type 📊

The category or classification of the trading indicator based on its primary function and analysis method.

Volatility

Average True Range (ATR) is a Volatility type indicator. Indicators that measure market volatility and price fluctuations Click to see all.
Asset Class 💰

Specifies the financial instruments for which the indicator is most commonly used

Stocks

The asset classes Average True Range (ATR) is typically used for are Stocks. Indicators optimized for analyzing and predicting stock price movements in equity markets. Click to see all.

Forex

The asset classes Average True Range (ATR) is typically used for are Forex. Indicators optimized for currency pair trading in the foreign exchange market. Click to see all.

Commodities

The asset classes Average True Range (ATR) is typically used for are Commodities. Trading indicators optimized for commodity markets like oil, gold, and agricultural products. Click to see all.
Made In 🌍

The country or origin of the trading indicator

1978

Average True Range (ATR) was developed in 1978. Trading indicators specifically developed in 1978

Characteristics

Lagging or Leading 🏁

Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.

Lagging

Average True Range (ATR) is a Lagging indicator. Indicators that confirm trends after they have started
Complexity Level 🧑

Indicates the level of expertise required to effectively use the indicator

Beginner

The complexity level of Average True Range (ATR) is Beginner. Simple and easy-to-understand indicators suitable for novice traders. Click to see all.
Popularity 🏆

Indicates how widely used and recognized the indicator is in the trading community

Medium

The popularity of Average True Range (ATR) among traders is considered Medium. Indicators with balanced adoption and potential effectiveness

Facts

Interesting Fact 💡

An intriguing or lesser-known fact about the trading indicator

Part of Welles Wilder's indicators
Sarcastic Fact 😉

A humorous or ironic observation about the trading indicator

It's the drama meter of the market - higher values mean more excitement

Application

Timeframe 🕑

The time intervals or periods for which the trading indicator is most effective or commonly used.

Daily

Average True Range (ATR) is most effective for Daily timeframes. Indicators optimized for daily chart analysis, suitable for swing and position traders.

Weekly

Average True Range (ATR) is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.

Technical Details

Calculation Method 🧮

The mathematical or analytical approach used to compute the trading indicator's values.

Moving Averages

Average True Range (ATR) uses the Moving Averages calculation method. Indicators combining different moving averages for comprehensive trend analysis. Click to see all.
Signal Generation 📊

Describes the methods by which the indicator produces trading signals

Thresholds

Average True Range (ATR) generates trading signals through Thresholds. Indicators that generate signals when certain predefined levels or conditions are met
Customization Options 🔧

Lists the parameters that can be adjusted to fine-tune the indicator

Period

Average True Range (ATR) offers customization options for Period. Enables customization of analysis timeframe Click to see all.

Usage

For whom 👥

The target audience or user group for the trading indicator

Risk Managers

Average True Range (ATR) is designed for Risk Managers. Focuses on volatility and potential market risks, crucial for risk assessment Click to see all.
Purpose 📈

The primary purpose or application of the trading indicator

Volatility Measurement

Average True Range (ATR) is primarily used for Volatility Measurement. Tools that quantify market price fluctuations and instability Click to see all.

Evaluation

Pros 👍

Advantages of using the trading indicator

Useful For Position Sizing

Helps Set Stop-Losses
Cons 👎

Disadvantages or limitations of the trading indicator

Doesn't Indicate Price Direction

Indicators that don't show price movement direction, limiting their usefulness in certain scenarios. Click to see all.

Performance Metrics

Reliability Score 💯

A score indicating the overall reliability of the trading indicator

8.5

The reliability score of Average True Range (ATR) is 8.5 out of 10. Click to see all.
Ease of Use Score 💻

A score representing how user-friendly and intuitive the trading indicator is

8

The ease of use score for Average True Range (ATR) is 8 out of 10. Click to see all.
Versatility Score 🔀

A score indicating the adaptability of the trading indicator across different markets and timeframes

7.5

The versatility score of Average True Range (ATR) is 7.5 out of 10. Click to see all.
Customization Score 🔧

A score representing the degree of customization available for the trading indicator

6.5

The customization score for Average True Range (ATR) is 6.5 out of 10.
Score ⭐

The overall score of the trading indicator based on various performance metrics

7.6

The overall score of Average True Range (ATR) is 7.6 out of 10. Click to see all.

Alternatives to Average True Range (ATR)

Average Directional Index (ADX)

Known for Trend Strength Without Direction

Exponential Moving Average (EMA)

Known for Smooth Price Movements

💻 is easier to use than Average True Range (ATR)

🔧 is more customizable than Average True Range (ATR)

⭐ is rated higher overall than Average True Range (ATR)

Donchian Channels

Known for Simplicity And Effectiveness

🔧 is more customizable than Average True Range (ATR)

⭐ is rated higher overall than Average True Range (ATR)

Moving Average Envelope

Known for Price Range Visualization

💻 is easier to use than Average True Range (ATR)

🔧 is more customizable than Average True Range (ATR)

⭐ is rated higher overall than Average True Range (ATR)

Keltner Channels

Known for Combining Moving Averages With Volatility

🔧 is more customizable than Average True Range (ATR)

Elder Triple Screen

Known for Trend-Momentum Alignment

🔀 is more versatile than Average True Range (ATR)

🔧 is more customizable than Average True Range (ATR)

⭐ is rated higher overall than Average True Range (ATR)

Relative Strength Index (RSI)

Known for Momentum Measurement

💻 is easier to use than Average True Range (ATR)

⭐ is rated higher overall than Average True Range (ATR)

Bollinger Bands

Known for Volatility And Trend Strength

🔀 is more versatile than Average True Range (ATR)

🔧 is more customizable than Average True Range (ATR)

⭐ is rated higher overall than Average True Range (ATR)

Simple Moving Average (SMA)

Known for Smooth Price Movements

💻 is easier to use than Average True Range (ATR)

⭐ is rated higher overall than Average True Range (ATR)

Awesome Oscillator (AO)

Known for Simplicity And Effectiveness

FAQ about Average True Range (ATR)